The Effects of Monetary Policy in Brazil: Results from Agnostic Identification
19 Pages Posted: 29 Aug 2008
Date Written: August 27, 2008
This article investigates the effects of monetary policy shocks in the Brazilian economy through the period of July/1999 to January/2008. We follow the procedures suggested by Uhlig (2005) to verify the impact of the monetary policy shock over both inflation and output. The main consequences of a contractionary monetary policy shock are: instantaneous real GDP declines that are large in magnitude; and a drop of 0.4 percent in the price index (IPCA) during the first five months after the shock.
Keywords: Monetary policy, Vector autoregressions, Bayesian econometrics, Agnostic identification and monetary shock
JEL Classification: E51, E52
Suggested Citation: Suggested Citation